Global investors may be underpricing the impact of a conflict between Israel and Iran, market watchers warned on Monday, as stocks rallied despite escalating warfare in the Middle East. The two regional powers continued trading fire on Monday, marking the fourth consecutive day of fighting since Israel launched airstrikes against Iran last week.

Indian stock markets opened on a flat note in green on Monday, reflecting cautious investor sentiment amid ongoing tensions between Iran and Israel.

Paint manufacturers such as Asian Paints, Berger Paints, and Kansai Nerolac source around 50% of their raw materials from crude-based derivatives like resins and solvents. These input costs are highly sensitive to crude fluctuations.

When asked at a news briefing Monday about the prospect of a ceasefire, however, Israeli Prime Minister Benjamin Netanyahu indicated he was not interested in one, according to NBC News. Netanyahu said Israel is "not backing down" from eliminating Iran's nuclear program.

Oil prices leaped, and stocks slumped on worries that escalating violence following Israel’s attack on Iranian nuclear and military targets could damage the flow of crude around the world, along with the global economy.

President Donald Trump abruptly announced that he would leave the G7 summit a day early and return to Washington shortly after posting an ominous social media message that appeared to suggest more carnage in Iran.